Blowing the whistle on cheating employers and workplace fraud

By Clay Hopkins of Hopkins Law Firm, LLC posted in Whistleblowing on Wednesday, November 23, 2016.

Almost everyone who has held a job in a large company has seen an employee cutting corners. Perhaps this employee is even cheating for the benefit of the company. This was the case for a young employee named Tyler Schultz. Mr. Schultz held a job with a healthcare company that performed medical research. This company develops new products and drugs for the benefit of patients and the medical field. During his time for this company. Mr. Schultz witnessed executives in the company ignoring routine quality control checks that ensure the data from their research and experiments remains unbiased. This is important because if a product or medication is not properly tested it can have serious consequences for patient safety.

After watching this happen for eight months, Mr. Schultz emailed people towards the top of the food chain to voice his concerns. Of course, the fears that many people have when blowing the whistle on a cheating employer came true. The company's president came back with a withering response that accused Mr. Schultz of failing to grasp the basics of objective science. It appeared as though the company was trying to protect its own interests at the expense of Mr. Schultz and the very foundations of objective science. The company increases its revenue by churning out products and medications faster and it was trying to cut corners by skipping quality control checks and doctoring their research to make it look cleaner. While the results are products that reach the market faster, it could also make these products appear more effective and safer than they actually are.

Mr. Schultz couldn't take the pressure of the company's executives and was forced to quit his job. Thankfully, Mr. Schultz has some protection as a whistleblower who was simply trying to do the right thing for patients who could potentially receive the company's products. He filed a complaint with the State of New York Public Health department and is now cooperating with a federal investigation into his former employer's practices. The United States Securities and Exchange Commission is also involved. Mr. Schultz can rest easy knowing that the law is on his side.

Legal Protection for People Who Report Fraudulent Practices

There are multiple laws at the state and federal level that protect employees who blow the whistle on fraudulent practices within their company. These laws exist not only to protect people trying to do the right thing, but also to encourage honest practices within industries. Economic sectors such as medicine and healthcare depend on honest reports and research to protect the health and well-being of people who receive their products.

This is true in multiple industries across the board. These laws protect employees against retaliation from their employers if the reports are filed with good intentions even if there isn't enough evidence for an investigation to move forward. Some laws even specify that if the accusations do end up going to court with a substantial financial settlement, the people who initially reported the fraudulent practices may receive a percentage of the financial payout.

For people who are considering filing a complaint to report potentially fraudulent practices or a cheating employer, it is vital that they understand the steps in blowing the whistle. In order for a whistleblower to be eligible to receive a financial settlement, they must be represented by an attorney before the complaint is lodged. Furthermore, anyone who receives threats, retaliation, or harassment from someone within the company is in violation of the retaliation laws that protect whistleblowers. As such, be sure to report the harassment to the company's human resources sector or contact an experienced attorney.

Anyone looking to file a report to disclose fraudulent practices within a corporation needs the assistance of an experienced attorney. Businesses will always act in their best interest and will work hard to cover their tracks. They may even bury the other side in paperwork using the full force of their legal department. Rely on a skilled lawyer to assist in the navigating the complicated legal battlefield. With so much at stake, people need the help of someone who has been there before.

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